5.
“A disruptive innovation is an innovation that helps create a new market and value network, and eventually goes on to disrupt an existing market and value network (over a few years or decades), displacing an earlier technology.The term is used… to describe innovations that improve a product or service in ways that the market does not expect, typically first by designing for a different set of consumers in the new market and later by lowering prices in the existing market.”  Source: Wikipedia

6.
“A disruptive innovation is an innovation that helps create a new market and value network, and eventually goes on to disrupt an existing market and value network (over a few years or decades), displacing an earlier technology.The term is used… to describe innovations that improve a product or service in ways that the market does not expect, typically first by designing for a different set of consumers in the new market and later by lowering prices in the existing market.”  Source: Wikipedia

8.
Cheaper, Inferior Technology Simpler, Smaller Performance More Convenient Progression And so, the Innovation that But, has other technology evolves mainstream attributes, that and advances in customers don’t other customers, market segmentswant today due to usually in smaller and opportunities their inferior emerging markets, that are outside ofperformance today value incumbents radar

11.
 Term disruptive technology was coined by Prof Clayton Christensen in the 90s He then replaced disruptive technology with the term disruptive innovation .. …because he recognized that it is the strategy or business model that the technology enables that creates the disruptive impact

12.
 Term disruptive technology was coined by Prof Clayton Christensen in the 90s He then replaced disruptive technology with the term disruptive innovation .. …because he recognized that it is the strategy or business model that the technology enables that creates the disruptive impact

22.
Example Inferior Cheaper, simpler, Technology Performance smaller, more Progression convenient -Low Integration -Affordable, per -Beginning at the -Low subscriber pricing low end of the customization -Accessible anywhere, market: SMBs -Breadth of anytime -Moving upstream Functionality -All you need is a through technology - Security browser, no hardware progression by concerns or software to installCRM On -Web based consumer leveraging “the broad and richDemand like user interface foundation of the internet”

23.
 The Internet, mobile, semiconductors and cloud computing are key infrastructural technologies that are Semiconduc enabling the disruption of many Mobile tors industries This is enabled by going to the low Cloud end of the market and gradually SaaS moving upstream through a series of Computing innovations, eventually displacing mainstream solutions Internet However, in all of these examples this “low end of the market” was merely the bottom of developed markets

32.
Grameen Village Phone Today • A decade ago more than 3 Billion • Mobile phone use in developing people still lacked reliable countries surpassed that of telephone service, however developed areasRepackaging technology mobile phones still too expensive • In Africa, mobile subscribers for BoP grew from 25M in 2001 to 650M • So instead, Grameen bank gave • Mobile apps empower individuals loans to lady entrepreneurs in users enrich their lifestyles and rural Bangladesh to buy phone livelihoods, and boost the and resell it to villagers economy as a whole. • Result: • Lifting from poverty the lady entrepreneurs, with money spent mainly on health & education for kids • Positive financial impact of service to customers, with value of each call of up to 10% of monthly income Sources of images: Word Bank

33.
Grameen Village Phone Today • A decade ago more than 3 Billion • Mobile phone use in developing people still lacked reliable countries surpassed that of telephone service, however developed areasRepackaging technology mobile phones still too expensive • In Africa, mobile subscribers for BoP grew from 25M in 2001 to 650M • So instead, Grameen bank gave • Mobile apps empower individuals loans to lady entrepreneurs in users enrich their lifestyles and rural Bangladesh to buy phone livelihoods, and boost the and resell it to villagers economy as a whole. • Result: • Lifting from poverty the lady entrepreneurs, with money spent mainly on health & education for kids • Positive financial impact of service to customers, with value of each call of up to 10% of monthly income Sources of images: Word Bank

35.
Example Inferior Cheaper, simpler, Technology Performance smaller, more Progression convenient -Breadth -Free -Technology -Reliability and -Accessible anywhere, progression solved accuracy all you need is a technical issues -Images browser such as uptime and -Always up to date adding images -Searchable - With time and the -Multi languages power of crowdsourcing reliability improved and breadth surpassed mainstream Encyclopedia

36.
The Challenge The Solution • No available •“For many other cultures, encyclopedia in many in which there are no strong commercial cultures / languages incentives to create in developing encyclopedia, Wikipedia is countries - the only comprehensive commercial or encyclopedia available at otherwise all. Therefore, the impact of Wikipedia has been more revolutionary and crucial for those cultures in the “long tail” of the languages list.” Source: The Wikipedia Revolution

37.
The Challenge The Solution • No available •“For many other cultures, encyclopedia in many in which there are no strong commercial cultures / languages incentives to create in developing encyclopedia, Wikipedia is countries - the only comprehensive commercial or encyclopedia available at otherwise all. Therefore, the impact of Wikipedia has been more revolutionary and crucial for those cultures in the “long tail” of the languages list.” Source: The Wikipedia Revolution Note: •While progress has been made the full impact on BoP is yet to be realized. •Among the “packaging challenges” are the ability of the local community to contribute as well as ability to access & edit via mobile phones.

40.
The Challenge The Solution •In 2002, there were 2 billion • Clean renewable off grid people living without solutions such as solar energy • In addition to light at night, electricity, half of them in provides necessary electricity to Africa power water pumps and cool •In these poor rural areas no vaccines grid system exists • Repackaging for BoP: •30% of income spent on • Bring the knowhow and train candles, kerosene and the community and its leaders diesels as alternative • Set up a business to cover maintenance costs (recharge – dangerous, expensive and mobile phones business) polluting alternative • As a result, number of people living without electricity down to 1.3 billion. Source: Adapted from Innoafrica

41.
The Challenge The Solution •In 2002, there were 2 billion • Clean renewable off grid people living without solutions such as solar energy • In addition to light at night, electricity, half of them in provides necessary electricity to Africa power water pumps and cool •In these poor rural areas no vaccines grid system exists • Repackaging for BoP: •30% of income spent on • Bring the knowhow and train candles, kerosene and the community and its leaders diesels as alternative • Set up a business to cover maintenance costs (recharge – dangerous, expensive and mobile phones business) polluting alternative • As a result, number of people living without electricity down to 1.3 billion. Source: Adapted from Innoafrica

43.
Example Inferior Cheaper, Technology Performance simpler, smaller, Progression more convenient -The pleasure of -No need for water - Moving upstream using warm water or bath from waterless hygiene -Requires a -Mobile, available solution to the poor to change of mindset anywhere, anytime a bathing-alternative to of what clean -TTM – quicker more affluent means -Modular, pay per - Added moisturizers, use (bath) model and in the future we -Eco friendly may see other addition like sun screen,Dry Bath vitamins (e.g. D), etc. -Targeting upstream markets as airlines, armies, hotels, lazy teenagers… -Other potential: Gyms at work, for long treks

44.
The Challenge The Solution •Dry bath for cleanliness & •2.5 billion people globally convenience do not have proper access •Saves 2 hours a day and to water and sanitation 800 liters in water •As a result, over 2 million people suffer and often die from easily treatable diseases like trachoma and diarrhoea

45.
The Challenge The Solution •Dry bath for cleanliness & •2.5 billion people globally convenience do not have proper access •Saves 2 hours a day and to water and sanitation 800 liters in water •As a result, over 2 million people suffer and often die from easily treatable diseases like trachoma and diarrhoea Was made possible thanks to the “flattening of the world”, local entrepreneur access to knowhow and resources made possible by the internet (Google, Wikipedia), mobile access and NGOs.

46.
Definition:  Examples for potential According to Gartner, Big Data isbecoming a metaphor for: applications:1. Increasing volumes of info2. Finding info in previously  - Achieving double bottom lineignored or new data types by analyzing and /or selling3. Hadoop and MapReduce ` the tons of data generated via mobile appsSimilar to the Internet, SaaS, Cloud andCrowdSourcing, Big Data, or “analytics in thecloud” has the potential to become one ofthe biggest disruptors  - With Big Data, financial apps can reach the BoP by analyzingThough Big Data is only beginning, biggest many types of market signalswinners will be pioneers focusing on BoP and data and achieving finer customers segmentations

47.
Corporate SocialSocial Entrepreneur Responsibility Officer“Doing well while doing good” – high growth “Doing well while doing good” – high growth “Doing wellsegmentsdoing good” profitable while – high growth profitablesegments profitable segments Moving Upstream to more lucrative markets: Gradually moving upstream to more lucrativeGradually moving upstream to more lucrative Through a series of sustaining innovations, gradually moving upstream to more lucrative segments eventually segments eventually displacing mainstream segments eventually displacing mainstream displacing mainstream solution at the top of the pyramid.the pyramid solution at the top of the pyramid solution at the top of Blue ocean: often no need to Defense: Necessary defensive compete head to head with measure against threat to incumbents playing in the mainstream business from developed countries disruption from below

48.
Corporate Social Social NGO Responsibility Entrepreneur Officer 1. Inferior performance Look for innovation that are: 2. Cheaper & simpler 3. Technology progression Partner with Social Make sure to package and Good candidates: any Look to target disruptive innovations that are leveraging one of Entrepreneurs & adapt technology in a way innovation the company the key infrastructure technologies: Internet, SaaS, Cloud, innovators targeting that fits developing is addressing at the base Semicon, Mobile, Crowd Sourcing, Open Source and Big Data disruptive innovations countries circumstances of the top of the pyramidPromote innovations and Make sure to package and Good candidates: any models that are self adapt technology in a way innovation the company is sufficient and avoid that fits developing addressing at the base of the injecting “bad aid” countries circumstances top of the pyramid

49.
 Most established companies fail in commercializing disruptive innovations. To succeed, established vendors need to: • Start early and before mainstream Timing business been affected •Will be achieved by addressing the BoP • Dedicate an autonomous organization with Organization size and cost structure appropriate for the opportunity today • Treat it as both a threat and an opportunity Approach in a new and emerging market